Has the housing market in Madison been affected by the economic downturn? (for sale)

[new2madison]

We have just started looking for houses, and I´m wondering what to expect. Are the prices here still quite firm, or is there room to negotiate?

I´ve been told that the market here is very strong, and has remained so.

Does anyone have any opinions?

Thanks

[Megan1967]

Well, there are about 5 houses on my street for sale and they have been for months. Not sure what that means. Could be people aren't budging on their prices, I have heard that.

[gold*dust1]

Our local market hasn't experienced as much of a downturn as some of the hardest hit places but it's all relative. Talking to a real estate agent who is a life long Madison resident, she confirmed for me it is bad.

There is room for negotiation, but I would say it has alot to do with the condition of the property. Places that have been updated, have features that stand out above the rest, are in a good location, are newer, or all of the above, seem to be able to command a higher asking price. Ultimately it is only worth what someone will pay for it.

Since it is harder to qualify for a loan now, it is leaving those with less than steller credit out in the cold. I follow the local mls listings and have seen many properties drop their prices under assessed value or even start out listing below assessed value and are still sitting, and others that sell quickly.

[Bowie]

When I lived in Madison, the city and county governments' tight controls on development prevented a glut in new housing. Those controls kept prices higher than they would have if unbridled development were allowed. I would guess they'll also serve to keep prices from dropping too quickly.